The International Monetary Fund (IMF) has formally requested additional data from the Power Division to inform its decision regarding potential relief in inflated electricity rates for the months of August and September.
As reported by local media outlets, the necessary information has been duly provided to the IMF, with the expectation of a prompt response—either an approval or denial of relief measures aimed at alleviating the burden of high electricity bills on the populace.
At present, officials from both the Power and Finance Divisions are actively engaged in discussions with IMF representatives, focusing on the data pertaining to proposed tariff relief measures. They are also addressing concerns related to their potential impact on the country’s circular debt, cash flow, and any potential delays in payments to independent power producers.
It is noteworthy that the IMF has been presented with a comprehensive plan aimed at reducing electricity tariffs by up to 30 percent for the months of August and September. Furthermore, the proposal outlines that the benefits of these reduced tariffs will be extended to consumers during the forthcoming winter season, spanning from October 2023 to March 2024.
This recent development follows a statement by interim Prime Minister Anwaar-ul-Haq Kakar on August 31, in which he disclosed that the government was actively engaged in negotiations with various multilateral financial institutions concerning potential relief measures for electricity consumers.
While the prime minister assured that the government would soon unveil relief initiatives, adhering to international commitments, it’s important to note that the timeline for this announcement has elapsed, and the decision from the IMF remains pending.
